Risk Update

Conflicts Allegations on Video — Ex-partner AG Faces Allegations, Menendez Associate Indictment Conflict Called

Nevada Walgreens Lawsuit Raises Conflict of Interest Concerns” —

  • “The law firm chosen for the Walgreens opioid-related lawsuit was Egglet Adams, the firm where Attorney General Aaron Ford worked as a partner before taking up his current office. Now some are raising concerns about a conflict of interest.”
  • “In July, Attorney General Aaron Ford announced the state had settled with Walgreens for $285 million, holding the pharmacy chain responsible for its role in the opioid epidemic in Nevada. Of that $285 million awarded, at least $65 million went to attorney fees. The law firm chosen for the lawsuit was Egglet Adams, the firm where Attorney General Aaron Ford worked as a partner before taking up his current office. Now some are raising concerns about a conflict of interest.”
  • “Additionally, Senate Minority Leader Heidi Seevers Gansert told 2 News that the cap for outside attorney fees increased from $10 million to 25% in 2017 when Ford was the Senate Majority Leader. The statute change happened in the final hours of the 2017 legislature when normal legislative oversight rules were lifted. Two years later in 2019 when Ford was Attorney General, his office selected Egglet Adams, his former firm, for opioid-related lawsuits.”
  • “The Communications Director for the Attorney General’s office told 2 News that Attorney General Aaron Ford did not play any role in selecting Egglet Adams. The selection was based on the fact that Egglet Adams is one of the few firms that can bear the upfront costs of lawsuits where evidence gathering costs tens of millions of dollars. Additionally, Nevada received more money by pursuing its lawsuit with the help of Egglet Adams than it would have by joining a multistate case.”
  • See the video report from local TV news KTVN: Here.

Prosecutor: Fred Daibes faces conflict of interest with lawyer in NJ bank fraud case” —

  • “Fred Daibes, the prominent North Jersey developer charged alongside Sen. Bob Menendez in alleged bribery scheme, faces a conflict of interest with the attorney who represents him in a New Jersey bank fraud case that dates back to 2018, federal prosecutors say.”
  • “Daibes is one of five people indicted in an alleged corruption scheme involving Menendez and his wife, Nadine Arslanian Menendez, in a separate case. Daibes pleaded not guilty last week to the superseding indictment.”
  • “An attorney representing the United States in the bank fraud case said he believes there is a potential conflict of interest with Daibes’ attornies, Lawrence S. Lustberg and Anne Collart of Gibbons P.C., related to the Menendez indictment.”
  • “The indictment shed light on Menendez’s alleged interference with Daibes’ bank fraud charges, saying Menendez nominated a U.S. attorney he believed he could influence in Daibes’ favor.”
  • “Hana is represented by Lustberg in the Menendez indictment. ‘Mr. Lustberg knows certain facts allegedly relevant to those charges,’ wrote Vikas Khanna, first attorney for the United States in the district of New Jersey, in a letter to United States District Judge Susan D. Wigenton on Wednesday.”
  • “The government requested that Daibes be made aware of the potential conflict of interest and if appropriate, sign a voluntary waiver to continue with Lustberg as his attorney. U.S. District Judge Sidney Stein repeatedly asked Hana if he wanted new representations at the arraignment last week.”
  • “Stein noted that Lustberg could be called as a witness because he serves as Daibes’ attorney in a different federal case based in New Jersey. Hana said he was satisfied with Lustberg even after Stein reiterated that he would not be able to appeal on the grounds that Lustberg was conflicted at the end of the trial.”
  • “That same day, Hana signed a waiver of any potential conflict of interest caused by Lustberg’s potential conflict of interest by counsel’s concurrent representation of Daibes, according to court documents.”
  • “A status conference hearing — originally a sentencing date before a judge withdrew a plea deal for the bank fraud charges — was held for Daibes on Thursday. During the hearing, the potential conflict of interest was discussed for 45 minutes, court records show. The hearing is scheduled to continue on Nov. 16.”
  • “Last month, corruption and bribery charges were filed against Menendez by the U.S. attorney for the Southern District of New York. The unsealed indictment said Menendez accepted hundreds of thousands of dollars in bribes from three New Jersey businessmen, including Daibes, in exchange for helping them enrich themselves and trying to get them out of trouble.”